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HomeMy WebLinkAbout01 - 6-12-01City Council Meeting June 26, 2001 Agenda Item ii 1 CITY OF NEWPORT BEACH City Council Minutes Study Session June 12, 2001 - 3:10 p.m. INDEX ROLL CALL Present: Heffernan, Ridgeway, Bromberg, Proctor, Mayor Adams (arrived at 3:15 p.m.) Absent: Glover, O'Neil CURRENT BUSINESS 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR — None. 2. BUDGET REVIEW. Building Director Elbettar stated that the Building Department budget for the 2001 -2002 fiscal year represents a 2.6% increase over the previous year's budget and is below the ceiling set for the department. He added that the Building Department collects fees for permits, plan checks and other services offered to the public, and utilizes 25 full -time employees and 1.5 Full -Time Equivalent (FTE) employees. Building Director Elbettar stated that the proposed budget includes converting a temporary Building Inspector II position into a full -time permanent position. He explained that this is necessary due to a major rise in construction activity over the past four years, which has remained consistent. City Manager Bludau confirmed that the current temporary position is full -time. Building Director Elbettar stated that the Building Department is comprised of three divisions. He noted Account 8030, Equipment Maintenance & Repair, and stated that the line item is prorated among the three divisions and is used to maintain the Professional/Technical building. Mayor Pro Tem Ridgeway confirmed with Building Director Elbettar that the Building Department is the only department budgeting for the maintenance of the building. Building Director Elbettar noted the Inspections Division and the money budgeted for the vehicles used by the department. He stated that Account 8110, Utilities, is primarily for cell phones and includes the rise in the cost of utilities. Account 9010, Computer Equipment, will be used to replace the handheld units. He additionally noted Account 9400, Office Furniture /Fixtures, which will be used to renovate the inspection area. Building Director Elbettar stated that the Plan Checks & Permits Services Division includes $198,000 for Account 8080, Professional & Technical Volume 54 - Page 289 2001/2002 Budget (40) City of Newport Beach Study Session Minutes June 12, 2001 INDEX Services, which is used for a grading consultant and overtlow plan checks when there is an increase in volume. Council Member Proctor asked why the Building Department's budget detail doesn't include actual numbers from 1999 and 2000, as is provided for the other departments. Administrative Services Director Danner explained that the Building Department was reorganized into three divisions, so comparable historical data was unavailable. At the request of Mayor Pro Tem Ridgeway, Building Director Elbettar stated that in 1996, there was $149 million in construction done in the City, in 1997, $203 million, and in 1998 and 1999, $205 million and $305 million, respectively. He added that 1999 was higher due to the Bonita Village annexation. When asked by Mayor Pro Tem Ridgeway if the trend would continue, Building Director Elbettar stated that he felt it would due to the increase in construction activity again for the current year. He added that plan checks have increased 30% increase and represent activity for the next two years. Mayor Pro Tem Ridgeway agreed with the recommendation to add a permanent position. City Attorney Burnham responded to Mayor Pro Tem Ridgeway's question about the Newport Coast annexation, by stating that plan checks and new construction would be handled by the County. City Manager Bludau added that there are also legal considerations when hiring someone on a temporary basis for a long period of time. Mayor Pro Tem Ridgeway asked about Account 8080 and learned from Building Director Elbettar that the City does receive an administrative fee when using outside consultants. Administrative Services Director Danner added that a recommendation to increase the fees in the City by 3% to 4% would be before the City Council at an upcoming City Council meeting. Per Mayor Pro Tem Ridgeway's question about Account 9010, Building Director Elbettar stated that the new handheld units would have a wireless modem capability. He added that a new phone system being proposed, which will increase customer service, is a byproduct of the interactive voice response (IVR) system. Using a PowerPoint presentation, General Services Director Niederhaus stated that the proposed budget for the 2001 -2002 fiscal year for the General Services Department is a .9% increase over the current year. He stated that the increase includes three new positions, two of which will be funded by the General Fund and one that will be funded by the Internal Service Fund. He stated that the increase also includes the operations and maintenance of the new facilities in the City. General Services Director Niederhaus stated that the department currently includes nine divisions, but the evening meeting includes an item to reorganize the department. He stated that the proposed reorganization is designed to improve service levels and would not involve any new positions. He displayed organizational charts of the department, before and after the proposed reorganization. General Services Director Niederhaus stated that the three new positions being requested are a Maintenance Worker II position in the Facility Maintenance Division, a Maintenance Worker II in the Street Maintenance Division and a Stock Clerk in the Equipment Volume 54 - Page 290 City of Newport Beach Study Session Minutes June 12, 2001 Maintenance Division. INDEX General Services Director Niederhaus pointed out the details of Account 8080, Professional & Technical Services, for all of the divisions in the department. He noted that the contracted custodial services expenditures in the Facilities Maintenance Division of $132,000, and stated that it includes cleaning of City facilities. Additionally, he noted the $37,000 being budgeted for day labor in the Field Maintenance Division, which includes the reforestation of Corona del Mar. In the Operation Support Division, he highlighted the $31,000 budgeted for graffiti removal. General Services Director Niederhaus noted that another expenditure in Account 8080 worth noting is the $25,400 budgeted for temporary help for holidays and summer in the Refuse Division, and includes the contract workers used for the additional pickups done during those periods. He stated that the $663,000 budgeted for contract services in the Parks Division covers the cost of the maintenance of the medians and new parks in the City. At the request of City Manager Bludau, General Services Director Niederhaus explained that the additional pickups for the summer can't begin prior to the week of the Fourth of July due to the holiday, but that they will be doing a plastic trash pickup on July 5, 2001, in West Newport. Council Member Proctor stated that weekly rentals in West Newport begin prior to the Fourth of July week. He asked if the additional refuse pickups could begin earlier. General Services Director Niederhaus stated that twice a week pickups that were done in previous years prior to the Fourth of July week didn't work because the residents expected it during the Fourth of July week also. He stated that it can be done when Fourth of July falls on a Saturday or Sunday and employees aren't taking a holiday day off, but not when the holiday falls on a midweek day. General Services Director Niederhaus and City Manager Bludau stated that they will look at the overtime budget again. General Services Director Niederhaus stated that Account 8080 in the Trees Division includes $335,400 for grid trimming of 8,600 trees annually. It also includes $124,800 for the annual trimming of the trees that cause the City liability. He stated that the Equipment Maintenance Division includes $28,200 for a temporary mechanic. General Services Director Niederhaus pointed out the overtime detail of the divisions, which included holiday restroom cleaning in the Facilities Maintenance Division, summer weekend sweeping and refuse collection in the Field Maintenance Division, coverage of eleven City holidays and summer Saturday refuse collection in West Newport in the Refuse Division, and support of special events in the Parks Division. General Services Director Niederhaus stated that the department spends approximately $1.7 million for special department expenses, Account 8250, which includes the handling and disposal of refuse. He noted that the City recovers $779,000 annually through the recycling service fee. General Services Director Niederhaus stated that water is a large expenditure for the department due to the parks, as is the electrical expense. He stated that Volume 54 - Page 291 City of Newport Beach Study Session Minutes June 12, 2001 INDEX they are attempting to achieve a 1576 to 20% reduction in electrical use based on a retrofit of the major lighting systems in the City. General Services Director Niederhaus outlined other major expenditures in the department, which included auto parts and debt service of thirteen vehicles. He added that they plan to reduce the debt service in the future by looking at buying more vehicles rather than paying for leases. General Services Director Niederhaus stated that the department only has two sources of revenue, and they include the recycling service fee and the solid waste franchise fee. He added that the department also has a grant from the California Division of Recycling. General Services Director Niederhaus stated that the equipment maintenance and replacement fund includes 42 items for the 2001 -2002 fiscal year. He noted the new rescue boat that will be paid for from the oil spill funding, bringing the total expenditure for rolling equipment replacement to approximately $2.1 million. In response to Council Member Heffernan's questions, General Services Director Niederhaus stated that the City Council at one time decided to have unlimited competition for trash collection, which has resulted in fifteen waste haulers. Public Works Director Webb responded to the question about power for the sewer pump stations by stating that the City has a number of emergency generators, has conducted training and is prepared to keep the pump stations operating, unless extreme conditions are experienced. Mayor Pro Tem Ridgeway added that most of the pump stations operated by the County Sanitation District of Orange County (CSDOC) also have backup generators. Public Works Director Webb stated that they currently do not, but will in the future. He added that even though some of the pump stations aren't the responsibility of the City, the City would respond to help insure that the sewage doesn't reach the bay. General Services Director Niederhaus responded to Council Member Heffernan's other question by stating that, as the trees are being replaced in Corona del Mar, the City is working with the business district regarding the sidewalks and the plans for Vision 2004. Public Works Director Webb added that the City would work around the trees and shouldn't experience any additional costs. Council Member Heffernan stated that citizens perceive the City as wasting money when sidewalks are cut up twice. General Services Director Niederhaus stated that no major sidewalk repairs are being done with the current tree plantings. In response to Mayor Pro Tem Ridgeway's question, General Services Director Niederhaus stated that the internal service fund was formed in 1996 to identify the cost of maintaining and replacing equipment. It set money aside from all departments into a reserve fund, with the goal of being able to purchase equipment without borrowing money. Administrative Services Director Danner added that the money comes from the general fund, as well as the water and sewer enterprise funds. Volume 54 - Page 292 City of Newport Beach Study Session Minutes June 12, 2001 INDEX Mayor Pro Tern Ridgeway asked why the recycling fee doesn't completely cover the service. General Services Director Niederhaus explained that the $1.5 million spent on refuse collection includes all associated costs, and that the money collected from the recycling fee does cover the recycling service expenditures. Council Member Bromberg confirmed with General Services Director Niederhaus that the median work to be done on Balboa Island is included on the checklist and that the City is aware that the Association will also be contributing funds. Council Member Bromberg additionally confirmed that the two public piers that are going to be redone are included in the Capital Improvement Program (CIP). Using a PowerPoint presentation, Community Services Director Kienitz stated that the Community Services budget for the 2001 -2002 fiscal year is $7,089,514. She displayed an organization chart, which showed that the department receives direction from three boards and commissions, and is divided into five divisions. The divisions include Administration, Arts and Cultural Services, Recreational Services, Senior Services and Library Services. Community Services Director Kienitz stated that the department has a total staff of 90.96 FTE. She added that only 55 full -time employees contribute to this number and that 134 part -time employees are also utilized, as are 485 volunteers which total 27.35 FTE themselves. Community Services Director Kienitz stated that the department's budget is supported by revenue directly related to department activities. She noted that the Recreation Division brings in approximately $1.5 million, and that $750,000 is expected to be received throughout the year from grants and gifts. Community Services Director Kienitz stated that the Recreation Division has experienced a 36% increase in participation over the last five years, and the Friends of the Oasis membership has increased 200% over the last ten years resulting in a 53% increase in participation of the Oasis programs over the same period of time. She stated that the new employees being requested in the 2001 -2002 budget responds to these increases in demand for services. Specifically, these include converting two part -time positions in the Recreation Division to two full -time positions and adding a new part -time position in the Senior Division. She added that it is also proposed to delete two part -time positions in the Library Division. Community Services Director Kienitz stated that the Administration Division supports the other four divisions as well as the three boards and commissions. She stated that the major expenditures are for the publication and delivery of the Newport Navigator. The major expenditures in the Cultural Arts Division are for the cultural arts grants and the Sister City Association. Community Services Director Kienitz stated that the Recreation Division is highly privatized and utilizes 55 part -time employees, 55 contract sports officials and 75 contractors/instructors. She added that a 5% increase in Volume 54 - Page 293 City of Newport Beach Study Session Minutes June 12, 2001 INDEX energy costs was included in the budget for the division. She stated that the two new full -time positions being requested in the budget include a Senior Recreation Coordinator and a Senior Recreation Leader. Community Services Director Kienitz outlined the expenses in Account 8080, as well as the mandated expenses of the division. She stated that the Seniors Division supports services to the senior population in the City, which represents 24% of the City's population. She stated that the new position being requested for the division is for a part -time Coordinator. Community Services Director Kienitz stated that the budget for the Library Division is approximately $4.1 million, which is exclusive of the Central Library debt service. She stated that the services of the division include library and information services, youth services, and youth and adult programming at the City's four libraries. She stated that the budget changes for the division include increased funding for energy costs and deleting two part -time positions. At the request of the Board of Library Trustees, she stated that additional funds are being budgeted for library materials and equipment replacement. Community Services Director Kienitz stated that the major expenditures for the division include automation hardware /software, maintenance of equipment, contract services and library materials. She stated that the Library Division's budget is subdivided into seven units. In conclusion, Community Services Director Kienitz stated that the department leverages the appropriated funds in the City's budget to provide a wide range of services to the community by using volunteers, donations of in -kind services, and grants and donated funds. Council Member Heffernan asked who administers the money budgeted for the Library Division. City Manager Bludau stated that he does, and that the Board of Library Trustees provides oversight to the library system. Community Services Director Kienitz added that the Board of Library Trustee's role is primarily for policy development and how the services are delivered. Community Services Director Kienitz provided a memorandum regarding the budgetary issues relating to the City aquatics program. She stated that there are two Joint Powers Agreements (JPAs) with the Newport -Mesa Unified School District for the use of the District's pools, one of which includes specific conditions for the use of the Marian Bergeson Aquatic Center (MBAC). She stated that when the energy crisis began, City staff began to hear rumors that the District was planning to close both the Harbor High pool and MBAC due to costs and mandates from the State regarding energy consumption. She stated that City staff began to work with the District on the issue, but that the Newport Navigator had to be delivered prior to a solution being found. For this reason, aquatic registrations were blocked until June 4, 2001. At that time, it was decided to heat only the Harbor High pool and move all classes, lap swims and clubs to that location. She stated that the biggest concern has come from the parents of the Corona del Mar High School Water Polo Team members. Community Services Director Kienitz stated that if the District decides to heat MBAC, the City Volume 54 - Page 294 City of Newport Beach Study Session Minutes June 12, 2001 I1O11)DRI would move the lap swims and clubs back to that facility, but the classes would remain at the Harbor High pool. Mayor Pro Tem Ridgeway asked about the daily cost of heating MBAC. Community Services Director Kienitz stated that the District would charge $422 per day to heat both pools during the eight -week summer period. She added that a surcharge has been added to all of the aquatic programs. Additionally, per Mayor Pro Tem Ridgeway's question, Community Services Director Kienitz stated that if MBAC is reopened, 180 swimmers from the clubs would move to that location, as would the lap swimmers. Per Mayor Adams' question about the daily cost to heat the pools, Community Services Director Kienitz explained that the daily cost of $422 is a portion of the total cost to run the pool as divided out by the number of days. Mayor Adams stated that he couldn't understand why the City had to pay money to keep one pool open. Community Services Director Kienitz explained that the District has agreed to run the pumps, and the City's fee is to keep the pool heated to 80- degrees. Mayor Pro Tem Ridgeway agreed that the District is quick to cut their budget, but the City and the District should be able to work together to open both pools. Mayor Adams asked what the obligations of the District were under the JPAs. Community Services Director Kienitz stated that their obligation at MBAC is to maintain the pool in a clean and healthful manner, but the City has the obligation to pay a surcharge to the District for utilities. She added that this hasn't been done before. Mayor Adams stated his dissatisfaction with the decision that has been made. City Manager Bludau agreed that there are still many unanswered questions pending with the District. Mayor Pro Tem Ridgeway requested that a Study Session be held on June 26, 2001, regarding the issue. He additionally requested that City Manager Bludau meet with the finance director and the superintendent of schools. He stated that a fair and reasonable agreement should be possible. Mayor Adams stated that the JPAs also need to be looked at. He noted that the differential cost to heat the MBAC pool couldn't be $400 per day over the previous year. Mayor Pro Tem Ridgeway stated that the JPAs include all public facilities, and the current issue shouldn't be difficult to address. Mayor Adams agreed that the immediate problem needs to be addressed, but stated that the larger issue of the JPAs and the availability of facilities also needs to be looked at. Council Member Heffernan stated that the problem is scheduling and one pool won't work. He noted that users of the pool are willing to pay an increase in fees, but agreed that the long -term issue also needs to be addressed. Volume 54 - Page 295 City of Newport Beach Study Session Minutes June 12, 2001 INDEX Mayor Adams asked about staffs recommendation to form a task force. Mayor Pro Tem Ridgeway volunteered to participate in the meetings, and further suggested that Assistant City Manager Kiff and City Manager Bludau be in attendance. Community Services Director Kienitz stated that staffs concurrence with Senator Bergeson's recommendation for a task force was intended to address the long -term issue. Mayor Adams stated that possibly the short -term and long -term issues could both be addressed. Public Works Director Webb stated that the Public Works Department budget separates the various divisions, so would easily translate if the reorganization to be proposed at the evening meeting is approved. He stated that the divisions include the Administration Division, which has no change in personnel, and the Engineering Division, which prepares the construction contracts and manages the consultants for the CIP. He stated that the Engineering Division has thirteen full -time and two part -time employees, and that a new Junior Civil Engineer position is being requested. He noted that the contracted design work for the various construction jobs equal 25 to 35 FTE. He stated that the new Junior Civil Engineer would handle the pavement management program. Public Works Director Webb stated that the Transportation and Development Division is the last division to make up the Public Works Department under the proposed reorganization. The three divisions represent a budget similar to the prior year's, with the exception of the new position being requested. He noted that the new position would be funded out of the gas tax fund. Per Council Member Proctor's question, Public Works Director Webb stated that the $17 million budgeted for the department includes the divisions that would comprise the proposed Utilities Department. Administrative Services Director Danner clarified that year -to -date actuals as of December 31, 2000, were used in the Budget Detail document. Council Member Proctor asked for an explanation of the increase being requested in the 2001 -2002 fiscal year budget. Administrative Services Director Danner stated that it includes the additional energy costs expected in the water and sewer funds. Public Works Director Webb stated that the proposed Utilities Department includes four divisions. He stated that the City has worked with the Edison Company to make some adjustments in the City's accounts and that the budget includes $1.265 million for electrical energy, which is a $160,000 increase over the previous year. He stated that an additional increase is expected for the City's water uses. Public Works Director Webb stated that streetlights are funded out of the Electrical Division and are budgeted at $500,000, or $45,000 over the previous year. He stated that an additional increase is also expected. Mayor Pro Tem Ridgeway asked if the LED lights being used for the stoplights weren't helping to bring the costs down. Public Works Director Webb stated that the Electrical Division budget does not include the traffic Volume 54 - Page 296 City of Newport Beach Study Session Minutes June 12, 2001 signals. .1. Public Works Director Webb stated that a $400,000 increase was also budgeted for electricity in the wastewater enterprise fund. He stated that if the energy rates increase as much as the Edison Company has predicted, the City's total would increase from $500,000 to $700,000. He noted that this increase would be handled throughout the year. Mayor Adams questioned not budgeting for the increase in the proposed budget. City Manager Bludau stated that the increased energy costs aren't known and could increase further. City Manager Bludau additionally noted that staff has discussed reducing usage and decided that replacing the lights in the City buildings could result in a savings. City Manager Bludau stated that he would like to add a CIP item to the budget checklist that would replace the lights. Mayor Adams was assured that this would not reduce lighting quality. Public Works Director Webb stated that the Oil and Gas Division doesn't include any employees, since the services are contracted. He stated that an additional $30,000 is being budgeted for increased maintenance and supply needs. Public Works Director Webb stated that the total Water Division budget is lower due to a reduction in imported water costs. He stated that a new Utilities Specialist position is being requested for the division in water production. He explained that additional testing is required for the groundwater facility. Public Works Director Webb stated that a new Utilities Specialist position is also being requested for the Wastewater Division. He stated that more stringent requirements are making it necessary to clean the sewer pipes more frequently. Public Works Director Webb clarified for Mayor Pro Tem Ridgeway that both the General Services and Public Works departments use vactor trucks. Public Works Director Webb stated that the total Utilities Division budget is an increase of approximately $52,000 over the previous year. Per Mayor Adams's request, Public Works Director Webb stated that the Utilities budget is approximately $14.192 million and Public Works is $3.424 million. Administrative Services Director Danner stated that the Internal Service Funds include the equipment maintenance and replacement fund, and the insurance reserve fund. He stated increases are not being requested for any of the insurance reserve funds, which include workers compensation, general liability and disability. He added that a compensated absences fund and a retiree medical fund have also been established, with $867,000 for the retiree medical fund being the only increase in the Internal Service Funds. Per Mayor Adams' question, Administrative Services Director Danner explained that a study was conducted and it was determined that the City Volume 54 - Page 297 City of Newport Beach Study Session Minutes June 12, 2001 INDEX had $14 million in unfunded retiree medical liability. He added that the budgeted amount would cover the expected expenditures for the year and help to establish the reserve. Mayor Adams asked what period of time is needed to fully fund the reserve. Administrative Services Director Danner stated that they plan to fund the reserve over a thirty -year period. Mayor Adams asked how the City compares to other cities. Administrative Services Director Danner stated that most cities do not fund retiree medical liability, but it will be required in the future. Per Council Member Heffernan's question, Administrative Services Director Danner stated that funds have not been set aside for the airport Memorandum of Understanding (MOU) or the Environmental Impact Report (EIR). City Manager Bludau explained that the amount is unknown and that it also sends a message that the City expects litigation. Public Works Director Webb, referring to the CIP budget book, stated that $13.9 million would be rebudgeted from the current fiscal year for the 2001- 2002 budget. Administrative Services Director Danner stated that the projects that are being rebudgeted will also be on the budget checklist. Public Works Director Webb stated that the CIP for 2001 -2002 totals approximately $34.9 million. He stated that approximately $4.4 million will also be requested in a supplemental rebudget. Referring to the summaries section of the CIP, Public Works Director Webb stated that the CIP is broken down into several funds and categories. He listed the categories in the general fund, which included facilities rehabilitation and remodel, drainage and streets. Public Works Director Webb stated that the streets category, budgeted at approximately $1.4 million, covers ocean front street ends and alley replacements. He stated that the miscellaneous category includes the economic development program, sign code revisions, Corona del Mar sidewalk replacement and street furniture, slope repair and the annual streetlight replacement program. Public Works Director Webb continued listing the categories in the general fund, which included parks, automation and communication, park -in -lieu, off- street parking, neighborhood enhancement, and disaster remediation. He stated that the general fund also includes oil spill remediation and assessment districts. Public Works Director Webb stated that another fund in the CIP includes the projects funded by the Community Development Block Grant (CDBG), a government grant received by the City. He listed the other funds as including the tide and submerged land fund and the building excise tax. Public Works Director Webb explained that the building excise tax is a fee that is charged on building permits and can only be used for recreational, library and fire facilities. Public Works Director Webb stated that the largest project in the water enterprise fund is the water transmission main master plan improvement program, budgeted at over $3 million. He stated that this project will replace and upgrade waterlines, primarily along Irvine Avenue. He stated that the wastewater enterprise fund includes sewer main replacement Volume 54 - Page 298 City of Newport Beach Study Session Minutes June 12, 2001 INDEX programs. Public Works Director Webb stated that the cooperative projects are funded by such sources as the gas tax, Measure M funds, and federal funds for the Arterial Highway Rehabilitation Program (AHRP). Public Works Director Webb noted that the City has received $36.2 million since 1996 -1997 from grants and other outside sources. He stated that some of the funds are allocated, but the City also files applications and competes for funds. Regarding grants and funds from outside sources, Mayor Pro Tem Ridgeway asked how much of that type of money was allocated to the Arches Bridge project. Public Works Director Webb stated that the project cost $24 million and that water enterprise and City gas tax funds contributed approximately $3 million, with the rest of the project being funded by grants and other sources. Public Works Director Webb stated that when a project is not completed in a given fiscal year, it is rebudgeted. He provided a handout that listed the projects and funds from the 2000 -2001 fiscal year requested as rebudgets for the 2001 -2002 fiscal year. He stated that these projects total approximately $4.4 million. Another segment of projects includes those that were not included in the CIP, but would be included on the budget checklist for City Council consideration. He stated that these projects are currently considered as unfunded. Public Works Director Webb stated that another segment of projects are those that were not included in the CIP, but are considered funded due to additional grants that were provided to the City. He noted that this segment totals approximately $1 million. He specifically noted Council Member Heffernan's request to set aside $50,000 for the MacArthur Open Space Landscaping project. Public Works Director Webb stated that he has received a commitment from The Irvine Company to use Circulation Improvement and Open Space Agreement (CIOSA) funding for the project. Public Works Director Webb briefly mentioned future projects, the last segment of projects provided in the handout. He stated that this list includes future projects listed in previous documents. He added that these will be included in the final CIP. Referring to the list of unfunded projects, Council Member Heffernan asked where the $350,000 for the Balboa Island Fire Station would be obtained. City Manager Bludau stated that it was approved by a prior City Council and would be for the purchase of the old site. Council Member Bromberg recalled that in October of 2000, the City Council approved $350,000 for matching funds but the project was never funded. Mayor Adams confirmed that the supplemental items would be taken up at the next City Council meeting. Val Skoro, Parks, Beaches & Recreation (PB &R) Commission Chairman, Volume 54 - Page 299 City of Newport Beach Study Session Minutes June 12, 2001 stated that the PB &R Commission endorses the enhancement of additional personnel as requested in the Community Services Department budget. He noted that Newport Beach has one of the highest senior populations in the County and added that the recreation division generates its own funds and has seen an increase in participation in their programs. PUBLIC COMMENTS — None. ADJOURNMENT — 5:45 p.m. The agenda for the Study Session was posted on June 6, 2001, at 2:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 300 INDEX CITY OF NEWPORT BEACH City Council Minutes Regular Meeting June 12, 2001 - 7:00 p.m. DRAFT INDEX Meeting) - 3:00 p.m. CLOSED SESSION - 6:00 p.m. CLOSED SESSION REPORT - None. » » » » » » » » » » » » » » » » » »» A. RECESSED AND RECONVENED AT 7:10 P.M. FOR REGULAR MEETING B. ROLL CALL Present: Heffernan, O'Neil, Ridgeway, Bromberg, Proctor, Mayor Adams Absent: Glover C. PLEDGE OF ALLEGIANCE - Council Member Bromberg. D. INVOCATION - Reverend Dr. William Flanagan of Saint Andrews Presbyterian Church. E. PRESENTATIONS Presentation to Supervisor Silva. Presentation of Tree City USA Award and Tree City USA Growth Award. F. NOTICE TO THE PUBLIC G. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION. ACTION OR REPORT (NON- DISCUSSION ITEM): • Council Member Proctor announced that he will be expending $1,188 of the $7,000 District allotment to renew the dog pickup bag contract for next year. • Council Member Bromberg stated that Balboa Island has a problem with motorized scooters and requested that staff bring back an ordinance regarding motorized and non- motorized scooters on North Bay Front, South Bay Front, East Bay Front, Grand Canal, and Marine Avenue sidewalks. • Council Member Bromberg requested that staff bring back an ordinance that prohibits dogs in the Carroll Beek Park on Balboa Volume 54 - Page 301 City of Newport Beach City Council Minutes June 12, 2001 H. Island since they pose a health issue. He explained that the park is very small and basically consists of a basketball court with some grass and a bench. He indicated that the grass and bench attracts dogs, adding that it has become an odorous and unsightly problem. Noting that the City has about 16 Boards, Commissions, and Citizen Advisory Committees, Council Member Bromberg stated that Council Policy A -9 requires that committee appointees be residents of the City, unless the committee enabling resolution provides otherwise. He indicated that some committees may have members who are appointees or representatives from other committees who may not be residents of the City. He suggested that the chairs of each committee be contacted to deal with this policy. Council Member Bromberg thanked everyone who participated in or attended the Balboa Island Parade and announced that he used $3,000 of the $7,000 District fund for the parade. Council Member Heffernan thanked Public Works Director Webb for his help in getting $400,000 in CIOSA grant funds to complete the landscaping project on MacArthur Boulevard. CONSENT CALENDAR READING OF MINUTESIORDINANCES AND RESOLUTIONS 1. Removed at the request of an audience member. 2. READING OF ORDINANCES AND RESOLUTIONS. Waive reading in full of all ordinances and resolutions under consideration, and direct City Clerk to read by title only. ORDINANCE FOR INTRODUCTION 3. Removed at the request of Mayor Adams. ORDINANCES FOR ADOPTION 4. Removed at the request of Council Member Heffernan. 5. EMERGENCY ORDINANCE AMENDING TITLE 5 (BUSINESS LICENSES AND REGULATIONS OF THE NBMQ TO ENACT PROVISIONS FOR TEMPORARY EMERGENCY ELECTRICAL GENERATORS. Adopt Ordinance No. 2001 -6 with an amendment to Section 5 of Exhibit A that reads, "Installation of the generator shall comply with the requirements of the City's Building Regulations and Fire Code." (subject to five affirmative votes). RESOLUTIONS FOR ADOPTION 6. EXTENSION OF THE AD HOC HARBOR COMMITTEE. Adopt Resolution No. 2001 -41 extending the tenure of the Ad Hoc Harbor Volume 54 - Page 302 INDEX Ord 2001 -6 Temporary Emergency Electrical Generators (27) Res 2001 -41 Ad Hoc Harbor City of Newport Beach City Council Minutes June 12, 2001 IIN11 Volume 54 - Page 303 Committee. Committee (24) 7. MEASURE M ELIGIBILITY RE- QUALIFICATION FOR FY 2000- Res 2001 -42 2001. 1) Adopt the Seven -Year Capital Improvement Program; 2) Capital Improvement direct staff to submit the adopted Capital Improvement Program, and Program/ the Maintenance of Effort certification to the Orange County Measure M/ Transportation Authority to satisfy the eligibility provisions for the Congestion Measure M and the Congestion Management Programs; and 2) adopt Management Resolution No. 2001 -42 pertaining to the status of the City's Circulation Programs/ Element and affirming there has been no unilateral reduction in lanes Circulation Element on any Master Plan of Arterial Highways street during FY 2000 -01. (74) 8. FOURTH OF JULY STREET CLOSURE RESOLUTION. Adopt Res 2001 -43 Resolution No. 2001 -43 authorizing the Police Department to Fourth of July temporarily close, or divert traffic from, portions of Seashore Drive, Street Closures Balboa Boulevard, and Newport Boulevard during the Fourth of July (85) holiday, to install temporary boundaries on Seashore Drive and to close certain parking lots. CONTRACTS AND AGREEMENTS 9. LEASE AGREEMENT FOR BALBOA YACHT BASIN WITH [No Report] BASIN MARINE, INC. (contd. from 3/27/01, 4/10/01, 4/24/01, 5/8/01 & 5/22/01). Continue indefinitely. 10. ENCROACHMENT AGREEMENT FOR CONSTRUCTION AND Ford One MAINTENANCE OF PRIVATE MEDIAN IMPROVEMENTS Development/ WITHIN THE FORD ROAD RIGHT -OF -WAY ADJACENT TO Private Median TENTATIVE TRACT NO. 15332 (FORD ONE DEVELOPMENT). Improvements Approve the application subject to: 1) execution of an Encroachment (65 /TT 15332) Agreement for non - standard improvements: a) authorize the Mayor and the City Clerk to execute the Agreement; and b) authorize and direct the City Clerk to have the Agreement recorded with the Orange County Recorder; and 2) an encroachment Permit issued by the Public Works Department. 11. Removed at the request of an audience member. MISCELLANEOUS ACTIONS 12. STREET TREE MAINTENANCE. Approve a budget amendment BA -054 (BA -054) in the amount of $29,500 to trim trees, root prune, and repair Clay Street tree root damage along Clay Street. Trees (40/62) 13. Removed at the request of an audience member. 14. BUDGET AMENDMENT TO TRANSFER $3,948 FROM THE BA -059 BONITA CANYON APARTMENT OVERTIME ACCOUNT 010- Building 22366 TO THE BUILDING DEPARTMENT OVERTIME Department ACCOUNT 2920 -7040. Approve BA -059. Overtime (26/40) Volume 54 - Page 303 City of Newport Beach City Council Minutes June 12, 2001 I. 15. BUDGET AMENDMENT FOR CALIFORNIA LAW ENFORCEMENT TECHNOLOGY EQUIPMENT PURCHASE PROGRAM. 1) Approve a budget amendment (BA -055) of $79,997 to be transferred from the General Fund unappropriated reserve to the Police Department Budget Account 1820 -9015, to fund the purchase of equipment for the approved California Law Enforcement Technology Equipment Purchase (CLETEP) program grant, 2) approve the purchase of forty Personal Digital Assistants (PDA) and related accessories and software from Symbol Technologies, Inc. at $1,793.50 per unit for a total cost of $74,740 plus tax; and 3) approve the purchase of one Personal Computer Server from Dell Computer corporation for a total cost of $6,494 plus tax. 16. PROPOSED REORGANIZATION OF PUBLIC WORKS DEPARTMENT INTO TWO DEPARTMENTS — PUBLIC WORKS AND UTILITIES. Approve City Manager's recommendation to separate the Public Works Department into two separate departments, Public Works and Utilities, with the addition of no personnel, to become effective July 1, 2001. 17. GENERAL SERVICES DEPARTMENT REORGANIZATION PROPOSAL. Approve the reorganization of the Operations Support and the Field Maintenance Divisions of the General Services Department, effective immediately. 18. PURCHASE OF REPLACEMENT VEHICLE. Receive and file report (no action). 19. RESPONSE TO HUD STAFF COMMENTS ON FY 1999 -2000 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER). Receive and file. Motion by Mavor Pro Tern Ridgewav to approve the Consent Calendar, except for those items removed (1, 3, 4, 11 and 13), and noting the amendment to Item No. 5. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover ITEMS REMOVED FROM THE CONSENT CALENDAR 1. MINUTES OF THE SPECIAL AND REGULAR MEETING OF MAY 22, 2001. Jim Hildreth, 120 The Grand Canal, requested that his comments on page 277 be amended to include his statement that the City should use one of the other two access structure drawings on Grand Canal. Volume 54 - Page 304 INDEX BA -055 California Law Enforcement Technology Equipment (CLETEP) Program Grant (40/70) Reorganization of Public Works and Utilities (66/74) Reorganization of General Services (44/66) Replacement Vehicle (44) Consolidated Annual Performance and Evaluation (87) City of Newport Beach City Council Minutes June 12, 2001 Motion by Mayor Pro Tern Ridgewav to waive reading of subject minutes, approve as amended, and order filed. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 3. MODIFICATIONS TO CHAPTER 12.54, MOTORIZED SCOOTERS, OCEANFRONT BOARDWALK SAFETY PROGRAM. Noting that the ordinance prohibits motorized scooters on the boardwalk, Mayor Adams pointed out that non - motorized scooters are not addressed in the ordinance. City Attorney Burnham believed that this could be addressed in a separate ordinance at the next meeting. Mayor Pro Tem Ridgeway expressed concern about restricting the use of non - motorized scooters on the boardwalk since many of the children use them to get to school. Mayor Adams clarified that he is requesting that the non - motorized scooters be acknowledged, along with skateboards, skates, and bicycles, and that the rules of the road also apply to them. Jim Hildreth, 120 The Grand Canal, indicated that he almost hit a child who was carrying a non - motorized scooter. He agreed that they also need rules to follow if they are to be used on the road. Motion by Mayor Pro Tern Ridgewav to introduce Ordinance No. 2001 -7 and pass to second reading on June 26, 2001. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 4. MODIFICATIONS TO CHAPTER 10.28 OF THE NBMC — LOUD AND UNREASONABLE NOISE. Council Member Heffernan stated that he was on the minority side of Council on this at the last meeting. He noted that one of the reasons this ordinance was brought about was because of the difficulty the District Attorney (D.A.) was having in prosecuting a noise - related offense. However, since Dennis Rodman has been charged by the D.A., he asked if the ordinance was still needed if this hurdle has been overcome. Deputy City Attorney Ohl stated that the section requiring a warning was added in order to assist the D.A.'s office in establishing Volume 54 - Page 305 INDEX Ord 2001 -7 Motorized Scooters/ Boardwalk Safety Program (70) Ord 2001 -4/ Noise Ordinance (68/70) City of Newport Beach City Council Minutes June 12, 2001 INDEX the willful element since this has been the most difficult element for them to establish in any prior criminal prosecution. City Attorney Burnham added that the D.A. would still prefer to have that element of the ordinance modified so it is easier for them to establish willfulness. Mayor Adams clarified that this ordinance is just a proposed modification to the existing ordinance. Council Member Proctor stated that he requested the amendment and emphasized that nothing is being changed with regard to what is and is not against the law. He noted that the only change being proposed is the procedure for the willfulness element because the methodology of enforcement is outmoded. He added that he has practiced this type of law for 31 years. In response to Council Member Heffernan's questions, Council Member Proctor stated that the penalty clause that created the misdemeanor has always been in the books, but it could have been an infraction or a misdemeanor. He clarified that the proposed ordinance provides a clarification that allows law enforcement to make the decision, which they are already permitted to do now, on arresting for a misdemeanor committed in their presence. He added that there was some question as to whether or not, under the old ordinance, they could or should do that and this is why they needed to seek a warrant from a judge on a misdemeanor. He believed that this method is archaic. Council Member Heffernan stated that he spent 1.5 hours with the Police Chief today discussing this ordinance and announced that he will be voting in favor of the ordinance tonight. Mayor Pro Tem Ridgeway emphasized that the ordinance was not focused on any one person, but is a general ordinance for the peace and quiet of all neighborhoods. Jim Hildreth, 120 The Grand Canal, stated that the City is a beach community, not a retirement community. He believed that a person's right to free speech and expression are being repressed through the selective enforcement of the new guidelines. He indicated that he respects the police, but noted that they are still individuals who possess human traits. He stated that, in light of this and the discretionary format of the proposed ordinance, equal rights and protection cannot always be guaranteed as stated in the Fourteenth Amendment. He indicated that the change in the noise ordinance is viewed as an aid to the constant complainer who has a lot of money and time. Mr. Hildreth noted that the police already have a procedure in place in which they use Notice of Disturbance cards and proceeded to read the card. He stated that he spoke with an attorney who feels the current noise ordinance is more than adequate and penalties should not change from an infraction to a misdemeanor, which could constitute a prison term, fine, or both. He concluded by asking if a permit is required if 15 or more people assemble at one location. Sue Edelstein stated that she lives next to Josh Slocum on West Coast Highway and did not have a problem with them when she first moved Volume 54 - Page 306 City of Newport Beach City Council Minutes June 12, 2001 INDEX in; however, now she needs to sleep with earplugs. She indicated that they sometimes turn their music down when she asks, but will not do it on the nights they have dancing. She noted that the City has a law that prohibits dancing but pointed out that they are still doing it. Ms. Edelstein stated that her and her neighbor have tolerated a lot and even get disturbed by the noise in the parking lot area. Mayor Adams reiterated that Council is not dealing with specific issues with Josh Slocum and reminded everyone that tonight deals with an ordinance amendment which is a general change to the existing noise ordinance. Edna Deeb stated that she is an attorney and a resident of the City. She indicated that she holds parties on her patio and uses loud music, but takes her neighbors' into consideration. She requested that Council take another look at the wording because she feels it infringes upon all citizens. She pointed out that we live in a world renowned beach resort and the local businesses will not have business without tourists. She added that the City has already overcome the spring breakers and gangs. Ms. Deeb believed that the definitions of "loud and raucous noise" and "unreasonableness" are vague and broad. She added that most ordinances also give a time of day and duration of the noise. Mayor Adams pointed out that Ms. Deeb's comments are mostly toward portions of the ordinance that have not been changed. Regarding Ms. Deeb's question, City Attorney Burnham indicated that Section 10.28.010.M was not included in the ordinance just to establish willful intent, but pointed out that the area that deals with "willfulness" is the requirement that the individual be notified before any citation is issued or arrest is made. Dolores Otting stated that she agrees with the previous speaker and believed that the current noise ordinance has always been ambiguous. She expressed the opinion that the amendment is a violation of everyone's rights. She relayed stories about Black Americans in the City and believed that the Council is entering into a gray zone that could cost a lot of money in the future in litigation. She reported that she has called the police about parties in the Spyglass area and was told to wait an hour or so, and indicated that her friend's family had to move from a house on 161h Street because of the noise. She asked how many citations have been issued that enforce the current noise ordinance, believing that the City does not enforce its laws. Ed Van den Bossche, 121 401h Street, praised Councils past and present for the behavioral improvements made in West Newport. He expressed the opinion that the existing ordinance is adequate and that further tightening of it is not warranted. He indicated that, if a citizen is being disturbed, the citizen can sign a complaint with the police. Edward McLaughlin, 5204 Seashore Drive, #B, read the Fourth Amendment and believed that the ordinance violates this amendment. He added that this should be brought to a vote of the people. He Volume 54 - Page 307 City of Newport Beach City Council Minutes June 12, 2001 INDEX indicated that a jackhammer can be operated outside his house until 6:30 p.m., but he would be in violation of the law if he got anywhere near that decibel level. He stated that the ordinance will now give the police the right to come into his home and arrest him for a crime that is not endangering his neighbors, and also removes the burden of probable cause from the police. Mr. McLaughlin stated that he has had the police at his house at 7:10 p.m. and was issued a $76 ticket that he defeated in court. He agreed that times need to be delineated. Susan Seaman stated that she has barbecues on the weekend and likes to listen to music somewhat moderately loud, but turns down the volume if her neighbors ask her to. She believed that this ordinance is allowing the police to make disturbing the peace charges rather than the D.A. Mr. Burnham emphasized that the D.A. is the only entity that files criminal complaints. Ms. Seaman indicated that the Police Department has told her that the ordinance is targeted to one person and asked what the process is and how this will be measured. Ann Lemmon stated that she lives next to the Village Inn and that she and her daughter oftentimes cannot sleep because of the noise. She expressed hope that this is a universal ordinance that also applies to all establishments. She indicated that she had a rental cancellation for the summer because the people found out the house was next to the Village Inn, which has a reputation of being noisy. She stated that she has tried to be a good neighbor. She agreed that something is needed for the peace and safety of all residents and expressed the opinion that the current noise ordinance has not helped. She pointed out that the bar does not have a decibel box, they want to knock down a wall to accommodate more drinkers, and are supposed to be at least 200 feet, not 15 feet, from a resident in order to have a live entertainment permit. Motion by Mayor Pro Tem Ridgeway to adopt Ordinance No. 2001- 4. Mayor Pro Tem Ridgeway noted that there are three constitutional lawyers on Council and that they even asked Dennis Rodman's attorney, Michael Molfetta, to help them improve the ordinance. He indicated that Mr. Molfetta could not help them because the ordinance would pass constitutional muster. He emphasized that some of the people who spoke tonight would actually be protected by the ordinance and noted that Mr. McLaughlin would have just received a warning. He stated that Council is not changing the law but is just providing a warning that did not exist previously. Council Member Bromberg took issue with some of the comments made tonight. He believed that they have not read the old ordinance and have not looked at the new ordinance because, if they did, they would not be speaking against it. He indicated that he has heard from 20 to 25 people since the last meeting who are thankful for what Council has done with the noise ordinance. He reiterated that the proposed ordinance provides a warning and that the current legislation has been Volume 54 - Page 308 City of Newport Beach City Council Minutes June 12, 2001 in existence for years. Council Member Heffernan stated that this is an open forum, even though he does not always agree with the comments, and it is Council's job to listen to residents. He emphasized that the ordinance needs to be applied across the board and needs to be color blind. He stated that he will be watching how it is being applied. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 11. PACIFIC COAST HIGHWAY SIDEWALK FROM CAMEO SHORES ROAD TO CITY LIMIT — AWARD OF CONTRACT (C- 3148). 13. CLASSIFICATION AND COMPENSATION STUDY FOR KEY AND MANAGEMENT POSITIONS. Without objection, Dolores Otting discussed Items 11 and 13 together. She stated that Item 11 was awarded to the lowest bidder for $33,000 and noted that the City saved about $23,000 by going out to competitive bid. However, a consultant is being hired for Item 13 for $75,000 without going out to bid. She noted that the City has a consultant who handles union issues and that the City is also concerned about how much more the electricity will cost. She believed that, if this contract had gone out to bid, the money that would have been saved could have been used towards paying the electricity bill. City Manager Bludau stated that Item 11 is required by law to go out to bid while Item 13 is not since it is for contractual services. However, he added that this does not mean they would exclude a bid. He indicated that he is trying to provide an overall salary structure, job description, and other things that are missing for the 60 positions that already exist for about 570 other positions. He reported that they started with a contract that was going to be about $29,000, but once the consultant began, she told him there were bigger problems than the initial scope of work. Further, she said she could not fix what needs to be done unless a complete classification and compensation study was conducted. He reported that the other people he checked with to see whether her bid of $75,000 was reasonable indicated that it was. Mr. Bludau stated that the study is important to him because he has an obligation to the employees who work hard for this City. He added that some employees are not being treated fairly because of a lack of a good salary system. Mr. Bludau explained that the classification and compensation study is a detailed study to determine whether the job descriptions for the 60 positions match the work that is actually being done. He stated that Volume 54 - Page 309 INDEX C- 3148 /BA -056 PCH Sidewalk (38/40) BA -058 C -3426 Classification and Compensation Study for Key and Management Positions (38/40/66) City of Newport Beach City Council Minutes June 12, 2001 INDEX salary structures and ranges are going to be recommended for these positions and noted that it may even be recommended that some of them receive less salary. Further, the study will compare these positions with other agencies and with positions within the organization to ensure that the salary relationships are appropriate. He acknowledged that $75,000 is a lot of money for 60 people, but stated that it is a lot of work and is the greatest need that he has in the organization in terms of a program that ties the organization together with regard to salary and work relationships. Mr. Bludau pointed out that the three positions that Council directly hires (City Manager, City Clerk, and City Attorney) will not be included in the study. Regarding doing this study in- house, he noted that it will take the consultant three months to complete the study. Further, the City does not have anyone with the experience and does not have the ability to pull someone from their duties for three months. Motion by Council Member O'Neil to 1) approve the plans and specifications; 2) authorize a budget amendment (BA -056) in the amount of $36,634 from the unappropriated Transportation and Circulation Fund Balance to Account No. 7261 - 5100606; 3) award a contract (C -3148) to C.J. Construction, Inc. for the total bid price of $33,334 and authorize the Mayor and the City Clerk to execute the contract; and 4) establish an amount of $3,300 to cover the cost of unforeseen work. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover Motion by Council Member Bromberg to 1) appropriate $75,000 from unallocated General Fund Revenue to Account #0410 -8080 (Professional and Technical Services) (BA -058); and 2) enter into a contract with the National Center for Educational Research and Technology (NCERT) for the development of a comprehensive classification and compensation plan for all Key and Management positions (60) for a contract price of $75,000. Mayor Pro Tem Ridgeway stated that he is going to vote for this because he feels it is appropriate; however, he agrees with Ms. Otting's comments about competitive bids. He believed that the City does competitively bid to the best of its ability, but stated that it may want to take a more critical look at its internal bidding and contracting. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Volume 54 - Page 310 City of Newport Beach City Council Minutes June 12, 2001 Abstain: None Absent: Glover J. PUBLIC COMMENTS INDEX Derek Lesson, 20342 Cypress Street, Santa Ana Heights, stated that the Mayor indicated two weeks ago that it would be wishful thinking to think that the John Wayne Airport (JWA) Settlement Agreement will remain the same. Noting that Santa Ana Heights (SAH) takes the brunt of the airport noise, he stated that this time they will have a voice and will be heard. He believed that, unless Stage 4 Jets are used in 2005, SAH residents should be compensated for the noise they endure since Irvine and South County cities want 14 million annual passengers (MAP) at JWA. Noting that he served on the Airport Commission in 1984 and 1985, Council Member Proctor suggested that the City conduct an informational meeting with SAH and the corridor cities to let them know what the City is trying to do to help protect their interests. Cordell Fisher, 95 Old Course Drive, stated that his home which he has lived in for only two years is in the process of being red tagged by the City because it does not meet Building Codes and noted that other homes in his community may have the same hazardous condition. He reported that the builder used non - pressure treated poplar wood embedded into cement for safety rails and now they are decaying. He indicated that, after speaking with a number of agencies, the City's Building Code regarding the use of materials for balcony and porch railings need to be amended. He submitted photographs, a copy of the builder's statement, and a petition with more than 100 signatures. Geneva Ryan, 3902 River Avenue, reported that the channel in front of her house is continuously polluted and no one can go into the water. She asked when this problem will be solved and believed that the solution is to dredge the sediment around West Newport Island. She stated that no one lives around Back Bay and questioned why it needs to be cleaned -up. Mayor Pro Tem Ridgeway stated that Ms. Ryan has attended a number of Harbor Quality Committee meetings and that she was told that the City is studying the issue and testing the water to determine if the contamination is human and/or animal life. Jim Hildreth, 120 The Grand Canal, stated that he found discrepancies in a letter from Assistant City Manager Kiff concerning Residential Pier 80100011. He requested that Council direct staff to do what is required under the California Public Records Act and indicated that he even provided a postal money order to pay for the cost of duplicating the documents he requested. He stated that he would like to know why some of the requested documents cannot be found. Further, he asked what the penalties are for the employee who fails to provide, destroys, or falsifies documents; and asked if there are any penalties for employees who purposely misdirects mail. Volume 54 - Page 311 City of Newport Beach City Council Minutes June 12, 2001 Dolores Otting reported that Council previously voted on a $250,000 item regarding a right -of -way that came from Hoag bonds. She noted that she had many questions about Hoag bonds and that the issue was brought back to Council in the City Manager's Newsletter which is not distributed to the public. She indicated that, even though the amount of outstanding Hoag bonds totals $316 million, Hoag still closed its emergency rooms in May. Mayor Adams directed the City Manager to bring items back at Council meetings, rather than in the newsletter, if Council requests a report on something. City Manager Bludau indicated that Council requested this be discussed at a study session after the budget process. Ms. Otting also discussed how her husband and his ex -wife previously donated $25,000 to Hoag Hospital which got their names placed on a wall designated for Friends of Hoag Hospital. However, she believed that his ex -wife donated more money and had her husband's name completely removed from the wall. She stated that, following several meetings, Hoag will be returning her husband's name to the wall, but wanted everyone to know that their names might have been removed at Hoag Hospital if they have been divorced. Chris Yelich stated that he is the Senior Vice President of Pacific Bay Homes who developed the One Ford Road project and indicated that he resides at the project. Regarding Mr. Fisher's comments, he noted that the materials were all City approved and that the material needs to be maintained on a regular basis because of the close proximity to the beach, otherwise they will decay. Council Member Bromberg expressed his concern about this issue and requested that Mr. Fisher contact him tomorrow. Mr. Bludau confirmed that all the materials used in this project did meet City codes and that Mr. Fisher is requesting that the City prohibit the use of certain woods that are currently allowed. Russ Niewiarowski, 20102 Kline Drive, Santa Ana Heights, reported that the JWA wall project, including his landscaping proposal, will be going before the Board of Supervisors on June 26. He also thanked the City for helping get two signal lights in the area of Bristol and Mesa. Regarding the JWA Settlement Agreement, he hoped that Council will be able to extend the agreement. He reported that the Great Park Initiative includes language that will terminate the settlement agreement in 2005. Mr. Niewiarowski indicated that the New Millennium Group will have its non - profit C -4 status filed and completed on Monday, and will be meeting with the Orange County Regional Airport Authority (OCRAA) to give a presentation on their initiative, The Orange County Public Benefits Initiative. He added that the Southern California Association of Governments (SCAG) feels that JWA should remain at 8.4 MAP and El Toro should have 29 MAP. RECESSED: 8:47 p.m. RECONVENED: 8:55 p.m. Volume 54 - Page 312 INDEX City of Newport Beach City Council Minutes June 12, 2001 K. L. 0 INDEX au ruV�u V111 vV U1V VIL V1V UV1Y11Y1111 L'L' HG11 V111L6 • Council Member Heffernan stated that he chairs the Finance Committee and requested that a 10 -year rolling forward budget be generated and that staff also compare the City's reserve amounts and policies with other cities. PLANNING COMMISSION AGENDA AND ORAL STATUS REPORT Planning 20. PLANNING COMMISSION AGENDA FOR JUNE 7, 2001. (68) Assistant City Manger Wood reported that the Boy Scouts of America proposal at 1931 West Coast Highway (Item 1) was approved following a slight relocation of the building and the addition of architectural detail. Regarding the Newport Riverboat Restaurant (Item 2), Ms. Wood reported that the new owners did not feel they needed to use the outside decks as much as the previous owners did, and announced that they and the Linda Isle residents reached a mutually acceptable solution. The Planning Commission approved the use permit. Ms. Wood reported that the Koll Office Site (Item 3) included a development agreement that had significant contributions to the City for traffic improvements. She indicated that the project was approved by the Commission without a lengthy public hearing because they did all their review earlier. She stated that this will be before Council for a public hearing on June 26, 2001. Regarding the Coastal Bluff Development Policy (Item 4), Ms. Wood reported that the Commission reviewed Council's discussions and comments and felt it would be best to incorporate this into the visioning process and the comprehensive General Plan Update because this deals with the General Plan policy. Motion by Mavor Adams to 1) receive oral report on the most recent Planning Commission actions; and 2) receive and file written report. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover PUBLIC HEARINGS 21. AWARD OF NON - EXCLUSIVE SOLID WASTE COLLECTION Ord 2001 -5 FRANCHISE TO OCEAN WASTE AND RECYCLING. Non - Exclusive Solid Waste City Manager Bludau reported that this firm meets the requirements of Collection Volume 54 - Page 313 City of Newport Beach City Council Minutes June 12, 2001 the Ulty's franchise agreement. Mayor Adams opened the public hearing. No public testimony was presented. Motion by Mayor Pro Tern Ridgewav to adopt Ordinance No. 2001- 5 granting a Non - exclusive Solid Waste Franchise to Ocean Waste and Recycling. The motion carried by the following roll call vote Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 22. FISCAL YEAR 2001 -02 PROPOSED BUDGET HEARING. City Manager Bludau reported that Council conducted three study sessions to review the budget and that the review process concluded today. Mayor Adams opened the public hearing. Ms. Otting took issue that some of the items that were passed out to Council today were not made available to the public. Mayor Pro Tem Ridgeway provided Ms. Otting with his handouts. Mayor Adams noted that a PowerPoint presentation and information regarding the swimming pool issue were distributed today. Mayor Adams agreed with Ms. Otting that a copy of the budget should be made available for public review. Ms. Otting suggested that non - residents pay more for recreational services than residents, especially since it is going to cost the City more to heat the swimming pools. She also suggested that Council look into changing the incline and width of the sidewalks around the Bonita Canyon Sports Complex. Noting that the purchase of a transfer truck is in the budget, she concluded by stating that she does not think the City should use front loaders to take trash to Stanton. There being no further testimony, Mayor Adams closed the public hearing. Motion by Council Member O'Neil to direct staff to prepare a "checklist" of proposed changes to the proposed budget that will be reviewed by the City Council at the meeting of June 26, 2001, and direct the preparation of the Budget Resolution for adoption, including any "checklist" items that are approved at the Council meeting of June 26, 2001. The motion carried by the following roll call vote: Volume 54 - Page 314 INDEX Franchise (42) FY 2001 -02 Budget (40) City of Newport Beach City Council Minutes June 12, 2001 Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 23. ADOPTION OF THE ANNUAL APPROPRIATION (GANN) LIMIT. City Manager Bludau reported that the difference in what the City is allowed to spend (Gann Limit) and what the City is spending is $26,941,613 since the appropriation limit is in excess of about $94 million and the proceeds of taxes is about $67 million. Mayor Adams opened the public hearing. No public testimony was presented. Motion by Council Member Ridgeway to adopt Resolution No. 2001 -44 approving the City's Appropriation (Gann) Limit for the 2001 -02 fiscal year in the amount of $94,050,612. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover 24. SENIOR HOUSING IN THE GEIF DISTRICT (PA2001 -075) - AN AMENDMENT TO SECTION 20.25.020 (GEIF DISTRICT: LAND USE REGULATIONS) OF THE ZONING CODE TO ALLOW SENIOR CITIZEN HOUSING IN THE GOVERNMENT, EDUCATIONAL AND INSTITUTIONAL FACILITIES (GEIF) DISTRICT WITH A USE PERMIT. Mayor Adams opened the public hearing. No public testimony was presented. Motion by Council Member Bromberg to introduce Ordinance No. 2001 -8 approving Code Amendment No. CA 2001 -001 and pass to second reading on June 26, 2001. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover Volume 54 - Page 315 INDEX Res 2001 -44 Annual Appropriation (Gann) Limit (40) Ord 2001 -8 PA 2001 -075 CA 2001 -001 Senior Housing (94) City of Newport Beach City Council Minutes June 12, 2001 25. PROPOSED HARBOR AND BAY ELEMENT (PA2001 -050) — THE HARBOR AND BAY ELEMENT IS A NEW OPTIONAL ELEMENT OF THE GENERAL PLAN INTENDED TO ADDRESS USES OF THE WATER AND WATERFRONT PROPERTY IN NEWPORT BAY AND HARBOR. Mayor Adams opened the public hearing. Regarding Goal HB -2 (Public Access), Jim Hildreth, 120 The Grand Canal, believed that the City - installed ladder is inadequate and improper if it is what the City intends to use for public access. Further, he believed that the ladder is dangerous, especially if no lifeguard is in the vicinity. For the record, Mayor Adams reported that Council received a letter from Ardell Investment Company regarding the Harbor and Bay Element. There being no further testimony, Mayor Adams closed the public hearing. Mayor Pro Tem Ridgeway reported that he has been working on this for 2.5 years with the Harbor Committee. He commended the Harbor Committee for its dedication and believed that the document is well put together. Motion by Mavor Pro Tem Ridgewav to adopt Resolution No. 2001- 45 approving the Negative Declaration and adopting General Plan Amendment No. GPA 2000- 002(C). Council Member Proctor commended Mayor Pro Tem Ridgeway and the Harbor Committee for putting this document together, especially since no other community has anything like this. Mayor Pro Tem Ridgeway also thanked City Attorney Burnham and Senior Planner Alford for making it a more condensed and understandable document that is consistent with other City documents. Council Member Proctor stated that he is heartened that a solution to the Bay problems will be found if the same amount of effort and creativity that was put into the Harbor and Bay Element is put into solving the Bay problems. Council Member Bromberg stated that about 65 percent of his district is on water. He noted that the Harbor Committee started long before he was on Council and that he has since had the chance to meet a lot of the members. He expressed the opinion that the talent of the Committee and their knowledge of the water is incredible, and believed that this type of talent could not have been bought to get the Element accomplished so quickly. Regarding Council Member Heffernan's questions, Mr. Bludau explained that this is an optional element because the State does not Volume 54 - Page 316 INDEX Res 2001 -45 GPA 2000- 002(C) PA 2001 -050 Harbor and Bay Element (45) City of Newport Beach City Council Minutes June 12, 2001 require the City to have one. City Attorney Burnham stated that Senior Planner Alford looked at the City's Land Use Plan of the Local Coastal Program (LCP), compared it with the proposed Harbor and Bay Element, and determined that it is consistent. He clarified that the Element will not be a part of the LCP, but will be in addition to the Land Use Plan of the LCP and any other components of the LCP the City develops over the next two years. The City will then be able to submit the LCP to the Coastal Commission for certification. He added that the LCP will be separate from the Element, except that it might be incorporated by reference. He stated that they will be talking to the Coastal Commission staff about that. Mr. Bludau added that the Coastal Commission staff has reviewed the Element, made comments, and the City has responded to those comments. Mayor Pro Tem Ridgeway stated that one of the problems they were confronted with was that they almost encroached into creating a regulatory document. However, the Committee worked very hard to maintain the Element as a policy document. He hoped that there will be more policy and less specificity and regulation in the General Plan Update process in order for Council to evaluate projects based on established criteria. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover N. CONTINUED BUSINESS 26. USE PERMIT 3626 (BUZZ) REVOCATION — 3450 VIA OPORTO — AN APPEAL BY THE APPLICANT OF THE PLANNING COMMISSION'S REVOCATION OF USE PERMIT 3626. City Attorney Burnham reported that Council previously referred this item back to the Planning Commission. It is staffs recommendation that Council rescind the prior action and authorize the appointment of a hearing officer to conduct a hearing on the use permit revocation appeal. Even though his client supports the recommendation, Barry Hanlon, 41 Corporate Park, Irvine, reported that they met with staff on May 23, 2001, and agreed on a course of action that was different than tonight's recommendation. He hoped that this will work and believed that some of the other things they are doing will be beneficial to everyone. He also expressed hope that this will get resolved quickly. In response to Dolores Otting's question, Mr. Burnham reported that the City has only had one other hearing of this nature previously and that it was for the Thunderbird. Ms. Otting stated that she and her Volume 54 - Page 317 INDEX UP 3626 Buzz Revocation/ 3450 Via Oporto (88) City of Newport Beach City Council Minutes June 12, 2001 husband previously frequented the Warehouse (now Buzz) and saw many of the police calls that initially went into the Warehouse go directly to the Thunderbird. She expressed hope that this will not become the same type of hearing that the Thunderbird underwent. Motion by Mavor Pro Tern Ridaeway to 1) rescind the City Council's action on February 13, 2001 referring the revocation back to the Planning Commission; and 2) direct the Planning Director to designate a hearing date and a hearing officer to conduct the revocation appeal hearing and submit proposed findings and recommendations to the City Council for final action. The motion carried by the following roll call vote: Ayes: Heffernan, O'Neil, Ridgeway, Proctor, Bromberg, Mayor Adams Noes: None Abstain: None Absent: Glover O. MOTION FOR RECONSIDERATION — None. P. ADJOURNMENT — 9:25 p.m. The agenda for the Regular Meeting was posted on June 6, 2001, at 2:20 p.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. City Clerk Recording Secretary Mayor Volume 54 - Page 318 INDEX